Types of Home Loans
Whether you are looking for a fixed interest loan to protect against rising interest rates, looking for your first property or structuring an investment property loan, Drexel is able to deliver professional lending advice. We specialise in:
Variable Rate Loan (Standard and Basic)
Variable rate loans have an interest rate that fluctuates throughout the loan term. The rate is set by the bank, however is influenced by economic conditions, government policy and the 'official' interest rate that is set by the Reserve Bank of Australia. Our loan specialists are experts in determining the most appropriate standard or basic variable rate loan that will make paying off your home loan as easy and flexible as possible.
Standard Variable Rate Loan
Offering a choice of standard home loans at competitive rates, Drexel has a range of loans to suit all needs, whether you are buying your first home, refinancing or purchasing an investment property. You can borrow up to 100% of the full purchase price. All our standard loans allow redraw access and over payments.
Basic Variable Rate Loan
Drexel also offers the option of a 'no frills' variable rate loan. Our basic variable rate loan is ideal if you are looking for an easy-to-manage home loan, with a low variable rate and no account keeping fees. Plus you have access to extra features like redraw, but you are only charged for these features when you use them.
First Home Buyer Loan
If you are looking for lower repayments in the early years of your home loan, then an Introductory/Honeymoon Rate Loan might be the best option for you. Benefits include:
First home buyer loan rates have a special discounted variable or fixed rate available for the first and sometimes second year of the loan. Drexel offers borrowers the option of a variable rate that has a set discount rate, which is set below the standard variable rate for the first year. This is followed by an ongoing discount variable rate in the subsequent years.
The value of our Honeymoon/introductory rate loans allows you the security of knowing that there will be no change in the interest rate you are paying plus you receive a discounted introductory rate.
Fixed Home Loan
Our expert loan specialists are able to compare and recommend a range of loan options for our clients, ensuring we can offer you the most attractive fixed rate loans with an interest rate that is fixed for a certain period during the term of your loan. This gives you the peace of mind that your repayments are safeguarded against the current increasing interest rates.
Because your loan is set at a fixed rate, your repayments also remain the same for the duration of the fixed rate period. At the end of the fixed period, you can switch to a variable rate loan or negotiate a new fixed rate or even opt for a split rate loan. Benefits of a fix rate loan include:
Split Loans
Drexels Split Rate Loans enable you to split the amount you borrow into a number of different loans. This affords you the flexibility to combine a variable and fixed rate loan, or two variables or two fixed loans. This means you get the benefits of both loans. At Drexel we allow you to split between any of our home loan and residential investment loan products.
A split loan brings together the benefits of variable and fixed interest rates into a single home loan. Our loan experts understand the need for flexibility in financial commitments and recommend split loans as an attractive option for first time as well existing borrowers looking to customise their loan and add as many features as required.
Split loans are useful in times of economic uncertainty, particularly when interest rates are rising. By splitting a loan, borrowers can hedge against the risk of higher rates while keeping part of their loan at the lower variable rate.
Offset Loans
For home buyers looking for ways to make the most of their money and reduce the term of their mortgage. Offset loans can be the answer.
An offset account works alongside your mortgage facility as a separate deposit account out of which daily banking and transactions occur. The offset account is linked to your mortgage so that any funds in it work to offset the principal on your loan. This means that the balance in your offset account is netted off against the balance of your linked loan, and the loan is charged less interest.
When recommending an offset account, Drexel draws from a multitude of lending institutions to deliver 100% offset options, which means the money in your account will offset your mortgage at the same variable interest rate you pay, effectively negating interest on the same amount of your loan.
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